INDEX TRACKER FUND - AKD Investment Management Limited · 2008. 10. 31. · The Management at AKD Investment Management Ltd. (AKDIML) is pleased to present the 1QFY09 report for AKD

Key to Success

Index Tracker Fund

AKDI n c o m e F u n d

AKDOpportunity Fund

AKDManaged by: AKD Investment Management Ltd.

1st Quarter ReportSeptember 30, 2008 (Un-audited)

AKD INDEX TRACKER FUND

First Quarter Report I September 30, 2008

CONTENTSCorporate Information

Mission & Vision Statement

Report of the Directors of the Management Company

Fund Manager's Report

Condensed Interim Statement of Assets and Liabilities

Condensed Interim Income Statement

Condensed Interim Cash Flow Statement

Condensed Interim Distribution Statement

Condensed Interim Statement of Movement in Unit Holders' Fund

Notes to the Condensed Interim Financial Statements



CORPORATE INFORMATIONMANAGEMENT COMPANYAKD Investment Management Limited

606, Continental Trade Centre, Block-8,

Clifton, Karachi-74000

BOARD OF DIRECTORS OF THE

MANAGEMENT COMPANY

ChairmanMr. Farrukh Shaukat Ansari

Chief Executive OfficerMr. Faisal Bengali

DirectorsMr. Ashraf Adamjee

Mr. Asif Ikram

Mr. Farooq Ahmed Awan

Mr. Imran Motiwala

Mr. Zahoor Motiwala

COMPANY SECRETARY & CFO OF THE

MANAGEMENT COMPANYMr. Muhammad Amin Hussain

AUDIT COMMITTEE

ChairmanMr. Ashraf Adamjee

MembersMr. Imran Motiwala

Mr. Zahoor Motiwala

INTERNAL AUDITORSFord Rhodes Sidat Hyder & Co.

Chartered Accountants

Progressive Plaza, Beaumont Road,

P.O. Box 15541, Karachi 75530.

TRUSTEECentral Depository Company

of Pakistan Limited

Suite # M-13-16, Mezzanine Floor,

Progressive Plaza, Beaumont Road,

Near PIDC House, Karachi.

BANKERSBank Alfalah Limited

Bank Al-Habib Limited

Habib Metropolitan Bank Limited

KASB Bank Limited

MCB Bank Limited

Mybank Limited

Standard Chartered Bank (Pakistan) Limited

AUDITORSM. Yousuf Adil Saleem & Co.

Chartered Accountants

Cavish Court, A-35, Block 7 & 8

KCHSU, Sharea Faisal, Karachi.

LEGAL ADVISERSattar & Sattar

Attorneys -at -law

3rd Floor, UBL Building,

I.I. Chundrigar Road,

Karachi

REGISTRARGangjees Registrar Services (Pvt.) Ltd.

516, Clifton Centre, Khayaban-e-Roomi,

Kehkashan, Block-5, Clifton, Karachi.

Tel: 5375714 - 5836920.

DISTRIBUTORSAKD Investment Management Limited

AKD Securities Limited

BMA Capital Management Limited

IGI Investment Bank Limited

The Bank of Punjab

Alfalah Securities (Private) Limited

Reliance Financial Products (Private) Limited

RATINGAsset Management Company

JCR-VIS: AM3+(AM-Three Plus)



MISSION STATEMENT

VISION

AKDITF aims to provide investors with an

instrument encapsulating the return and

diversification of the KSE 100 index.

To become the standard innovation and

diversification instrument for equity investors

in Pakistans capital market.



REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY

The Management at AKD Investment Management Ltd. (AKDIML) is pleased to present the 1QFY09 report for AKD Index Tracker Fund

(AKDITF), for the quarter ended September 30th, 2008.

Fund's Financial Performance

For the 1QFY09, the KSE-100 index declined by 25.30%. The index declined by approximately 25% in the first two months; however it

remained stable towards the end of the quarter as floor was imposed. Fund's NAV remained inline with KSE-100 index posting a negative

return of 25.18% over the same period, witnessing a marginal outperformance by 10 basis points. At the end of the quarter, the fund's

capital was 92.14% (approx) invested in the pre-defined KSE-100 basket, with approximately 7.55% held as cash in addition to the

amount held from dividend income for liabilities coverage.

Investment Strategy

AKDITF is the first Index Fund in Pakistan that provides investors with an in-depth diversification instrument. It is a passively managed

fund with the sole objective of tracking the KSE-100 index.

Economy

The present government faces an uphill battle to tame key economic indicators and revitalize investor confidence amidst the continuous

rotation of economic managers. The deteriorating twin deficits, rising inflation and worsening balance of payment situation highlight

the urgency to take quick and effective measures by the government.

Realizing the gravity of situation, the government took some corrective measures by reducing subsidies on diesel and power to curtail

fiscal deficit. Headline CPI growth (YoY) increased to 25.3% in Aug-08. Primary causes of headline inflation are after shocks of the global

commodity boom, currency depreciation and phasing out of energy subsidies. The newly appointed finance minister has laid out a series

of plans to bring the country back to its feet. The first plan is linked with inflows from international donors who have agreed to increase

assistance to Pakistan. The second plan is based on the outcome of 'Friends of Pakistan' meeting, scheduled for next month, and the

last option is a backup programme which, in the case of failure of the first two options, would be taken up by seeking IMF support.

There are some positive takeaways from the situation as the continuous decline in commodity prices will reduce Pakistan's vulnerability.

The decline will prove to be beneficial and would reduce import bill by $ 3.5-4bn per annum.

Future Outlook

We believe the steps taken by country's economic managers so far, are in the right direction. Although, the need of the hour suggest

an extra leap forward to effectively combat the financial crisis and stimulate economic growth. Global events may work in our favor

as the bailouts may prove to be beneficial as once the global economic activity reignites; it will open up avenues for the export of our

goods and services.

For and on behalf of the Board

Faisal Bengali

Karachi: 17th October, 2008 Chief Executive Officer



FUND MANAGERS REPORT

Fund Performance

The objective of AKD Index Tracker Fund (AKDITF) is to track the KSE-100 index upto 85% accuracy. The index declined by approximately25% during the first two months; however it remained stable towards the end of the quarter as floors were imposed, while the funddeclined by 25.18% (adjusting for Rs. 0.60 / unit bonus). The fund focuses on blue chip / index heavy stocks for tracking the index andreducing liquidity risk.

Market Performance

KSE-100 started the quarter at 12,289.03 on June 30th, 2008, and fell by 25.30% during the period to close the first quarter at 9,179.68.The market remained in the bearish mode during the first two months before the management of KSE decided to freeze the index atthe level of 9,144 on August 27 and there onwards the index remained flat. The decision to freeze the index was taken in the contextof the global and domestic financial crisis which included the depleting foreign reserves, inflation and credit crunch. It is expected thatthe new elected government will try its best to confront the economic challenges and pull the economy out of the financial crisis.

AKDITF vs KSE

AKDITF (L.H.S) KSE100 (R.H.S)

12000

11500

11000

10500

10000

9500

9000

8500

8000

10.55

10.05

9.55

9.05

8.55

8.05

7.55

7.05

9-Jul 16-Jul 23-Jul 30-Jul 6-Aug 13-Aug 20-Aug 27-Aug 3-Sep 10-Sep 17-Sep 24-Sep

Fund Activity

AKDITF is a passively managed fund and therefore does not require any major active fund management. However, the fund managerscontinue to fine tune the portfolio and accumulate illiquid stocks in order to bring the portfolio as close to the KSE-100 index as possible.

Sector-wise distribution of the fund, as of 30th September '08, is as follows:

Market Outlook

The imposition of floor of the KSE has restricted the downward movement of the index. We have seen considerable buildup of sellingpressure since the floor was imposed. Off-market volumes are well above those of the regular market. The blue-chips are trading at aconsiderable discount off market.

Major scrips are trading at attractive at these prices when compared regionally and historically. However, the persistent deteriorationof situation has shaken the investor confidence. Nevertheless, we see fertilizer companies, E&Ps, and IPPs as best positioned to counterthe downside risks.

Fertilizer4.99%

Oil & Gas Exploration23.16%

Others 30.38%

Food & PersonalCare Product 5.90%

Commercial Banks26.40%

Technology &Communication 4.67%

Investmentbank 4.50%



CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT SEPTEMBER 30, 2008

(Unaudited) (Audited) September 30, June 30,

2008 2008

Note Rupees in '000'

ASSETS

Bank balances 13,522 12,443

Investment in marketable securities 3 258,789 335,722

Receivable against sale of securities 10,087 -

Dividend and markup receivable 2,961 2,166

Preliminary expenses and floatation cost 2,622 3,000

Conversion cost 1,685 1,798

Security deposits 2,600 2,600

Other receivable 77 -

Total Assets 292,343 357,729

LIABILITIES

Payable against purchased of investment - 49

Payable against redemption of units - 1,168

Remuneration payable to management company 357 225

Payable to management company 8,515 9,045

Remuneration payable to trustee 58 61

Annual fee payable to Securities and Exchange Commission of Pakistan 74 572

Uncalimed dividend 2,417 2,418

Accrued expenses and other liabilities 63 175

Total Liabilities 11,484 13,713

NET ASSETS 280,859 344,016

Unit holders' fund 280,859 344,016

(No. of Units)

Number of Units in issue 34,582,418 30,032,816

Net assets value per unit (face value per unit is Rs. 10/-) - Rupees 8.12 11.45

The annexed notes 1 to 7 form an integral part of these condensed interim financial statements.

For AKD Investment Management Limited

(Management Company)

Faisal Bengali Imran MotiwalaChief Executive Officer Director



CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2008

Quarter endedSeptember 30,

2008 2007

Rupees in '000'

INCOME

Investment Income

Capital (loss) / gain on sale of marketable securities (1,625) 83,700

Dividend income 3,326 5,620

Markup on deposit account 325 1,373

2,026 90,693

Other income - 75

Element of (loss)/income and capital (losses)/gains included in

prices of units sold less those in units redeemed 4,747 (85,288)

6,773 5,480

OPERATING EXPENSES

Remuneration to management company 553 1,389

Remuneration to trustee 176 368

Annual fee to Securities and Exchange Commission of Pakistan 74 185

Auditors' remuneration 52 48

Central depository system charges 3 11

Amortisation of preliminary expenses and floatation cost 378 378

Amortisation of conversion cost 113 113

Financial charges - 115

Others 57 31

1,406 2,638

Net Income for the period carried forward to distribution statement 5,367 2,842







CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2008


2008 2007

Rupees in '000'

CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period 5,367 2,842

Adjustments for non cash item:

Amortisation of preliminary expenses and floatation cost 378 378

Amortisation of conversion cost 113 113

Element of (income)/loss and capital (gains)/losses included in prices of units issued

less those in units redeemed (4,747) 85,288

1,111 88,621

(Increase) / decrease in assets

Investment in marketable securities - available for sale (10,449) 259,666

Receivable against sale of securities (10,087) (153)

Dividend and profit receivable (795) (830)

Security deposits - (100)

Other receivable (77) (149)

(21,408) 258,434

Increase / (decrease) in liabilities

Payable against purchase of investment (49) 5

Payable against redemption of units (1,168) 513

Remuneration payable to management company 132 2,341

Payable to management company (530) (2,726)

Remuneration payable to trustee (3) (9)

Annual fee payable to Securities and Exchange Commission of Pakistan (498) 186

Accrued expenses and other liabilities (112) (2,351)

(2,228) (2,041)

Net cash (used in) / generated from operating activities (22,525) 345,014

CASH FLOWS FROM FINANCING ACTIVITIES

Amount received on issuance of units 72,353 44,746

Amount paid on redemption of units (48,749) (398,395)

Dividend paid - (42,117)

Net cash generated from / (used in) financing activities 23,604 (395,766)

Net increase / (decrease) in bank balances during the period 1,079 (50,752)

Bank balances at beginning of the period 12,443 79,129

Bank balances at end of the period 13,522 28,377







CONDENSED INTERIM DISTRIBUTION STATEMENT (UNAUDITED)FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2008


2008 2007

Rupees in '000'

Balance of undistributed income brought forward 59,739 49,941

Final Distribution of bonus Units for the year ended June 30, 2008 @ 6.0% (Re.0.60 per unit) (18,020) -

Final Dividend for the year ended June 30, 2007 @ 6.0% (Re. 0.60 per certificate) - (45,000)

Element of income / (loss) and capital gains / (losses) included in prices of units

sold less those in units repurchased amount representing unrealised capital gain (8,619) -

Net income for the period 5,367 2,842

(21,272) (42,158)

Undistributed income carried forward 38,467 7,783







CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS FUND (UNAUDITED)FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2008


2008 2007

Rupees in '000'

Net assets at beginning of the period 344,016 1,057,733

Issue of 75,000,000 units at the time of conversion - 750,000

Cancellation of 75,000,000 certificates at the time of conversion - (750,000)

- -

Issue of 8,278,365 units(2007: 3,604,570 units) 72,353 44,746

Redemption of 5,388,844 units (2007: 30,440,650 units) (48,749) (398,395)

23,604 (353,649)

Issue of 1,660,082 bonus units for the period ended June 30, 2008 18,020 -

Element of (income)/loss and capital (gains)/losses

in prices of units sold less those in units redeemed 3,872 85,288

Unrealised diminution on remeasurement marketable

securities- 'available for sale' (88,251) (23,874)

Capital loss / (gain) realized against sale of marketable securities - available for sale 870 (95,995)

(87,381) (119,869)

Income for the period less distribution (21,272) (42,158)

Net assets at end of the period 280,859 627,345

Net asset value per unit (Face value per unit Rs: 10/-) - Rupees 8.12 13.03







1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 AKD Index Tracker Fund (The Fund) was established as a closed-end scheme under a Trust Deed executed between AKD

Investment Management Limited (AKDIML) as Investment Adviser and Central Depository Company of Pakistan Limited

(CDC) as Trustee, under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (NBFC Rules).

The objective of the Fund is to invest in full depth of the market (KSE-100 index) according to the weightage prescribed by

the KSE, eliminating specific sector/stock risk, reliance on market timings and Fund Manager's performance. The units of

the Fund are listed on the Karachi Stock Exchange. The transaction in units commenced from July 12, 2007.

In pursuant to the resolution passed at an Extraordinary General Meeting of certificate holders held on January 26, 2007,

based on the supplemental Trust Deed with CDC dated May 02, 2007 and after obtaining approval from Securities and

Exchange Commission of Pakistan the Fund was converted into an open-end scheme with effect from July 01, 2007. The

AKDIML has been licensed to act as Asset Management Company. Each certificate holder of the closed-end scheme was

allocated units of the open-end scheme according to their respective holding as at that date at the ratio of one unit for each

certificate held.

The registered office of the Management Company is situated at 606, Continental Trade Centre, Block-8, Clifton, Karachi,

in the province of Sindh, Pakistan.

These financial statements are presented in Pak Rupees, which is the functional and presentation currency of the Fund.

Management Quality rating of 'AM3+' has been assigned to AKD Investment Management Limited by JCR-VIS Credit Rating

Company Limited. Due to specialised nature of the Fund, performance ranking of the Fund is not taken, as the comparable

benchmark is not available.

2. STATEMENT OF COMPLIANCE

2.1 These financial statements have been prepared in accordance with requirements of Companies Ordinance, 1984, the Trust

Deed, NBFC Rules 2003, Non Banking Finance Companies and Notified Entities Regulations, 2007 (the Regulations), directives

issued by the Securities and Exchange Commission of Pakistan and approved accounting standards as applicable in Pakistan.

Approved accounting Standards comprise of such International Financial Reporting Standards (IFRS) as are notified under

the provisions of the Companies Ordinance, 1984. Wherever, the requirements of the Companies Ordinance, 1984, the Trust

Deed, the NBFC Rules, the Regulations and directives issued by SECP differ with the requirements of these standards, the

requirements of Companies Ordinance, 1984, the Trust Deed, the NBFC Rules, the regulations and the said directives take

precedence.

2.2 These condensed interim financial statements are unaudited.

2.3 Basis of preparation

These financial statements of the Fund are prepared under the historical cost convention, except for investments - available

for sale and derivative financial instruments are stated at fair value.

(Unaudited) (Audited) September 30, June 30,

2008 2008

Rupees in '000'

3. INVESTMENT IN MARKETABLE SECURITIES

Marketable securities-available for sale 3.1 258,789 335,722

Marketable securities-held for trading 3.2 - -

258,789 335,722

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2008



3.1 MARKETABLE SECURITIES - AVAILABLE FOR SALE

(Face value of Rs. 10/- each unless stated otherwise)

Investment Banks / Investment

Companies / Sec. Companies

Arif Habib Securities Limited 29,915 2,900 1,600 7,803 39,018 4,103 4,906 73.89 2,883 (2,023) 1.41 1.03 0.01

First Capital Securities Corporation Ltd. 17,375 - - - 17,375 1,714 1,029 49.17 854 (175) 0.30 0.30 0.01

Jahangir Siddiqui & Company Limited 17,997.00 4,300 - - 22,297 11,900 11,153 332.32 7,410 (3,743) 3.21 2.64 0.01

Jahangir Siddiqui & Company Right - - 2,943 2,943 - - - - - - - - -

JS Investment Limited 10,204.00 - - - 10,204 1,103 970 57.00 582 (388) 0.28 0.21 0.01

JS Global Capital Limited 3,900.00 - - 1,559 5,459 1,501 1,217 166.43 909 (308) 0.35 0.32 0.01

Commercial Banks

Allied Bank Limited 65,820 2,300 - - 68,120 5,160 5,751 57.88 3,943 (1,808) 1.66 1.40 0.01

Askari Commercial Bank Limited 41,160 - - - 41,160 2,067 1,654 27.98 1,152 (502) 0.48 0.41 0.01

Bank Al Habib Limited 48,312 3,600 3,700 - 48,212 2,022 2,022 34.14 1,646 (376) 0.58 0.59 0.01

Bank Alfalah Limited 81,112 9,500 6,500 - 84,112 3,022 3,421 31.25 2,629 (792) 0.99 0.94 0.01

Crescent Commercial Bank Limited 91,000 11,000 10,000 - 92,000 1,606 976 10.45 961 (15) 0.28 0.34 0.01

Faysal Bank Limited 57,025 4,000 7,000 - 54,025 2,825 1,865 23.93 1,293 (572) 0.54 0.46 0.01

Habib Bank Limited 76,427 8,800 5,400 - 79,827 20,782 16,249 138.45 11,052 (5,197) 4.68 3.94 0.01

Meezan Bank Limited 47,103 6,000 4,000 - 49,103 1,175 1,485 27.20 1,336 (149) 0.43 0.48 0.01

Habib Metropolitan Bank Limited 59,978 3,200 - - 63,178 3,078 2,589 37.79 2,387 (202) 0.75 0.85 0.01

MCB Bank Limited 68,705 7,100 4,000 - 71,805 17,248 22,926 235.75 16,928 (5,998) 6.61 6.03 0.01

National Bank of Pakistan 102,860 11,900 - - 114,760 17,105 16,448 93.02 10,675 (5,773) 4.74 3.80 0.01

NIB Bank Limited 282,916 30,500 17,0 00 - 296,416 5,000 3,296 8.45 2,505 (791) 0.95 0.89 0.01

The Bank of Punjab 54,030 - - - 54,030 2,947 1,682 24.78 1,339 (343) 0.48 0.48 0.01

United Bank Limited 121,581 12,400 - - 133,981 15,045 11,198 68.25 9,144 (2,054) 3.23 3.26 0.01

Soneri Bank Limited 39,700 - - - 39,700 1,506 986 17.50 695 (291) 0.28 0.25 0.01

Standard Chartered Bank (Pakistan) Ltd. 391,400 43,500 29,300 - 405,600 18,903 9,335 15.90 6,449 (2,886) 2.69 2.30 0.01

Insurance

Adamjee Insurance Company Limited 13,337 700 - - 14,037 2,902 3,752 189.92 2,666 (1,086) 1.08 0.95 0.01

New Jubilee Insurance Company Limited 6,420 - - - 6,420 1,281 1,081 108.75 698 (383) 0.31 0.25 0.01

EFU General Insurance Ltd. 11,070 900 - - 11,970 5,090 4,184 163.28 1,954 (2,230) 1.21 0.70 0.01

EFU Life Assurance Limited 7,150 700 - - 7,850 3,798 3,009 356.75 2,800 (209) 0.87 1.00 0.01

Pakistan Reinsurance Company Ltd. 29,388 - - - 29,388 1,867 2,551 39.50 1,161 (1,390) 0.74 0.41 0.01

Number of shares Balance as at September 30, 2008 Percentage in relation to

Name of the Investee company Opening PurchasesBonus /

rights issueClosingbalance

Costvalue

Marketvalue

per share

Total book value of

Investment

Net assets

of the fund

Investeepaid

up capital(Face value)

SalesBookvalue

Marketvalue

Unrealisedappreciation/ (diminution)

(Rupees in '000') (Rupees in '000')

First Quarter R

eport I Septem

ber 30, 2008

AK

D IN

DE

X T

RA

CK

ER

FU

ND

Textile Composite

Nishat Mills Limited 43,797 3,800 - - 47,597 4,590 3,997 46.71 2,223 (1,774) 1.15 0.79 0.03

Synthetics & Rayon

Ibrahim Fibres Limited 44,200 - - - 44,200 2,108 2,321 39.89 1,763 (558) 0.67 0.63 0.01

Cement

D.G. Khan Cement Limited 67,800 13,500 - - 81,300 6,635 5,181 39.28 3,193 (1,988) 1.49 1.14 0.03

Lucky Cement Limited 55,800 15,100 - - 70,900 7,164 6,504 57.77 4,096 (2,408) 1.87 1.46 0.02

Tobacco

Lakson Tobacco Company Limited 6,280 - - - 6,280 1,603 2,386 343.67 2,158 (228) 0.69 0.77 0.01

Pakistan Tobacco Company Limited 26,200 2,900 2,300 - 26,800 2,549 3,155 113.89 3,052 (103) 0.91 1.09 0.01

Refinery

Attock Refinery Limited 11,525 1,800 1,000 - 12,325 2,433 2,952 140.90 1,737 (1,215) 0.85 0.62 0.02

National Refinery Limited 7,780 400 - - 8,180 2,717 2,407 196.03 1,604 (803) 0.69 0.57 0.01

Pakistan Refinery Limited 46 - - - 46 12 7 103.57 5 (2) - - -

Power Generation & Distribution

Hub Power Company Limited 117,400 11,500 9,000 - 119,900 3,198 3,369 21.46 2,573 (796) 0.97 0.92 0.01

Kot Addu Power Company Limited 122,800 9,700 7,400 - 125,100 5,873 5,841 40.00 5,004 (837) 1.68 1.78 0.01

Oil and Gas Marketing Companies

Attock Petroleum Limited 4,800 - - - 4,800 1,744 2,075 267.99 1,286 (789) 0.60 0.46 0.01

Pakistan State Oil Company Limited 17,100 1,700 1,000 - 17,800 7,659 7,329 279.99 4,984 (2,345) 2.11 1.77 0.01

Shell Pakistan Limited 5,575 500 500 1,393 6,968 2,926 2,325 310.31 2,162 (163) 0.67 0.77 0.01

Sui Northern Gas Pipelines Limited 55,700 6,700 4,400 - 58,000 3,436 2,487 31.41 1,822 (665) 0.72 0.65 0.01

Sui Southern Gas Company Limited 68,103 4,500 5,000 - 67,603 1,760 1,878 22.70 1,535 (343) 0.54 0.55 0.01

Oil and Gas Exploration Companies

Mari Gas Company Limited 3,500 - - - 3,500 621 943 134.58 471 (472) 0.27 0.17 0.01

Oil and Gas Development Company Limited 437,600 49,000 34,600 - 452,000 53,608 55,459 94.43 42,682 (12,777) 15.98 15.20 0.01

Pakistan Oil Field Limited 20,000 2,100 1,600 - 20,500 6,145 7,301 243.50 4,992 (2,309) 2.10 1.78 0.01

Pakistan Petroleum Limited 74,790 8,600 4,100 7,929 87,219 17,261 19,214 193.65 16,890 (2,324) 5.54 6.01 0.01




Costvalue

Marketvalue

per share

Total book value of

Investment

Net assets

of the fund

Investeepaid


SalesBookvalue

Marketvalue



First Quarter R

eport I Septem

ber 30, 2008

AK

D IN

DE

X T

RA

CK

ER

FU

ND

Engineering

International Industries Limited 7,903 2,000 - 1,580 11,483 834 1,170 76.70 881 (289) 0.34 0.31 0.01

International Industries Right - - - 1,975 1,975 - - 26.70 53 53 - 0.02 -

Automobile Assembler

Al-Ghazi Tractors Limited (Face value Rs. 5/- each) 4,100 - - - 4,100 751 1,117 223.00 914 (203) 0.32 0.33 0.02

Indus Motor Company Limited 16,900 800 - - 17,700 3,465 3,498 143.30 2,536 (962) 1.01 0.90 0.02

Pak Suzuki Motors Company Limited 8,000 - - - 8,000 1,791 958 83.79 670 (288) 0.28 0.24 0.01

Cable and Electrical Goods

Siemens Engineering Limited 1,200 - - - 1,200 1,177 1,687 1,210.00 1,452 (235) 0.49 0.52 0.01

Transport -

Pakistan International Airlines Corporation Limited "A" 200,000 - - - 200,000 1,927 1,000 4.20 840 (160) 0.29 0.30 0.01

Paksitan National Shipping Corporation Limited 28,500 - 2,700 - 25,800 2,220 1,846 54.15 1,397 (449) 0.53 0.50 0.02

Technology and Communication

Pakistan Telecommunication Limited "A" 412,300 32,900 29,000 - 416,200 23,158 15,925 31.50 13,110 (2,815) 4.59 4.67 0.01

Fertilizer

Dawood Hercules Chemicals Limited 9,880 1,000 500 1,038 11,418 2,475 3,919 231.89 2,648 (1,271) 1.13 0.94 0.01

Engro Chemicals Pakistan Limited 17,305 5,100 - - 22,405 4,677 5,893 180.44 4,043 (1,850) 1.70 1.44 0.01

Fauji Fertilizer Bin Qasim Limited 95,100 3,500 2,000 - 96,600 3,816 3,445 22.78 2,201 (1,244) 0.99 0.78 0.01

Fauji Fertilizer Company Limited 50,100 5,000 3,900 - 51,200 6,668 6,704 100.00 5,120 (1,584) 1.93 1.82 0.01

Pharmaceuticals

Abbot Laboratories Pakistan Ltd. 9,564 - - - 9,564 1,406 1,697 110.00 1,052 (645) 0.49 0.37 0.01

GlaxoSmithKline (Pakistan) Limited 17,387 800 700 - 17,487 2,379 2,933 108.70 1,901 (1,032) 0.85 0.68 0.01

Chemicals

ICI Pakistan Limited 13,200 700 - - 13,900 2,012 2,228 126.99 1,765 (463) 0.64 0.63 0.01

Pakistan PTA Limited 41 - - - 41 - - 3.18 - - - - -




Costvalue

Marketvalue

per share

Total book value of

Investment

Net assets

of the fund

Investeepaid


SalesBookvalue

Marketvalue



First Quarter R

eport I Septem

ber 30, 2008

AK

D IN

DE

X T

RA

CK

ER

FU

ND




Costvalue

Marketvalue

per share

Total book value of

Investment

Net assets

of the fund

Investeepaid


SalesBookvalue

Marketvalue



The Securities and Exchange Commission of Pakistan through its letter No. NBFC-II/AD/AKDITF/547/2008 dated July 16, 2008 extended relaxation from regulation 64(5) and (8) of Non-Banking Finance Companies and Notified Entities Regulations, 2007.

Accordingly the fund can continue to invest in any company regardless of restrictions of not investing more that ten percent of its paid up capital in a company or sufficient to acquire issued capital of the investee company and fund can also invest more than

twenty five percent of its net assets value in securities of any one sector as per classification of the Stock Exchange.

Paper and Board

Packages Limited 8,876 1,600 1,000 - 9,476 1,840 2,275 141.74 1,343 (932) 0.66 0.48 0.01

Food and Personal Care Products

Nestle Pakistan Limited 4,500 400 200 - 4,700 4,611 7,586 1,342.50 6,310 (1,276) 2.19 2.25 0.01

Unilever Pakistan Limited (Face value Rs. 50/- each) 4,520 - 140 - 4,380 8,214 10,293 2,345.00 10,270 (23) 2.97 3.66 0.01

September 30, 2008 Rupees in '000' 362,218 347,040 258,789 (88,251)

June 30, 2008 Rupees in '000' 351,770 407,015 335,722 (71,293)

3.2 MARKETABLE SECURITIES - HELD FOR TRADING

(Face value of Rs. 10/- each unless stated otherwise)

Number of shares / units Balance as at September 30, 2008 Percentage in relation to



Costvalue

Marketvalue

per share

Total book value of

Investment

Net assets

of the fund

Investeepaid


SalesBookvalue

Marketvalue



Open-End Mutual Funds

AKD Income Fund (Face value Rs. 50/- each) - 194,802 194,802 - - - - - - - - - -

September 30, 2008 Rupees in '000' - - - -

June 30, 2008 Rupees in '000' - - - -

First Quarter R

eport I Septem

ber 30, 2008

AK

D IN

DE

X T

RA

CK

ER

FU

ND

4. TAXATION

The Fund is exempt from tax under clause 99 of part I of the Second Schedule of the Income Tax Ordinance, 2001, subject to thecondition that not less than 90% of its accounting income of that year, as reduced by capital gain whether realized or unrealized,is distributed amongst its unit holders.

The Fund is also exempt from the provisions of section 113 (minimum tax) under clause 11 of Part IV of the Second Schedule tothe Income Tax Ordinance, 2001.

5. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected persons comprise of associated undertakings, directors and key management personnel. Significant transactions withconnected persons are depicted below: -


2008 2007

Number of units

AKD Investment Management Limited

Number of units held 573,869 543,810

Rupees in '000'

Remuneration to management company 553 1,389 Payment made in respect of formation and conversion cost - 1,500 Dividend received on holding - 326 Payment made on behalf of the fund - 1,357 Sales Load 38 7,251

AKD Securities Limited- Brokerage House

Commission paid on purchase and sale of marketable securities - 13

Number of units

Aqeel Karim Dhedhi Securities (Pvt.) Limited

Number of units held - 7,500,000

Directors and officers of the fund


AKD Investment Management Limited Staff Provident Fund Trust


6. DATE OF AUTHORIZATION FOR ISSUE

These financial statements were authorised for issue on October 17th, 2008 by the Board of Directors of the Management Company.

7. FIGURES

Figures have been rounded off to the nearest thousands rupees.






INH

OU

SE c

omm

unic

aiton

R.K

. Pri

nte

rs

606, Continental Trade Centre, Block-8, Clifton, Karachi-74000U.A.N : 92-21-111-AKDIML (111-253-465) Fax : 92-21-5373217

E-mail : [email protected] Website : www.akdinvestment.com

AKD InvestmentManagement Ltd.

Karachi Branch:

Shop No. 1, Plot No. SB-44/2,

Good Time Appartment,

Block 13-B, Gulshan-e-Iqbal, Karachi.

U.A.N : 92-21-111-AKDIML (111-253-465)

Karachi Branch:

Shop No. 13,

Pardesi Pride Building,

Frere Town, Clifton, Karachi.

U.A.N : 92-21-111-AKDIML (111-253-465)

Islamabad Branch:

Eastern Side Basement No.1-A,

Pak Pavilion, 65-E, Fazal-e-Haq Road,

Blue Area, Islamabad.

U.A.N : 92-51-111-AKDIML (111-253-465)

Lahore Branch:

306-A, 6th Floor,

Siddiq Trade Centre,

Gulberg, Lahore.

U.A.N : 92-42-111-AKDIML (111-253-465)

Documents

INDEX TRACKER FUND - AKD Investment Management Limited · 2008. 10. 31. · The Management at AKD Investment Management Ltd. (AKDIML) is pleased to present the 1QFY09 report for AKD